NEW YORK (CNN/Money) - Upbeat guidance from IBM, Nokia and Eastman Kodak Thursday ended the one-day timeout for a rally that has taken the Dow up nearly 1,000 points in five out of the last six sessions.

The Dow Jones industrial average (up 239.01 to 8275.04, Charts) rose about 3 percent. The blue-chip measure recovered all of the ground lost Tuesday when a four-day advance came to an end. The Nasdaq composite (up 39.87 to 1272.29, Charts) rose more than 3.2 percent, while the Standard & Poor's 500 index (up 19.18 to 879.20, Charts) gained 2.2 percent.

Market breadth was decidedly positive. On the New York Stock Exchange, advancers beat decliners about 2-to-1 as 1.7 billion shares traded. On the Nasdaq, winners beat losers about 2-to-1 as 1.7 billion shares changed hands.

Microsoft (MSFT: up $0.36 to $50.77, Research, Estimates)'s first-quarter results after the close beat Wall Street estimates by 7 cents a share, but the company warned on its fourth quarter. Revenue for the quarter was $7.75 billion, better than the company's earlier guidance. The company said it expects a fourth-quarter profit of between 45 and 46 cents a share. Analysts had forecast a profit of 50 cents a share, according to First Call. Microsoft shares rose $1.95 to $52.70 in after-hours trading.

No. 1 Unix server maker Sun Microsystems (SUNW: up $0.19 to $2.99, Research, Estimates) posted a narrower-than-expected loss for its first quarter of 2 cents a share. Analysts had forecast a 4-cent-a-share loss, according to First Call. Sun's shares rose 9 cents to $43.08 in after-hours trading.

"We're seeing better earnings news in corporate America. That's what the market is celebrating," said Art Hogan, chief market analyst with Jefferies & Co. "We made major collateral damage to stocks in the last six weeks and over a larger 2-1/2-year period. What's happening now is that the market is bottoming out and is building a higher support base in the process."

Stocks have taken wild swings on either side of breakeven this week, driven by volatility in an uncertain earnings and economic period. Analysts noted any bit of good news in the current climate elicits a marked response in an oversold market that's also coming off a slew of negative pre-announcements.

"Earnings are coming in improved, but one caveat is that a lot of them are also coming out of cost-saving and not revenue growth, and compared to expectations that are already so low," Sarat Sethi, portfolio manager with Douglas Lane & Associates, told CNNfn's The Money Gang.

Nevertheless, IBM's improved profit report and upbeat forecast fired up a stock surge straight off the opening bell. Telecom, networking and chip stocks pushed the Nasdaq higher, while Philip Morris and Eastman Kodak also boosted the blue-chips.

Given IBM's (IBM: up $7.30 to $72.20, Research, Estimates) expansive footprint in techs and across the broader market, blue chips and techs felt a power surge throughout the day.

The world's largest supplier of computer hardware and information technology (IT) services Wednesday posted a third-quarter profit that beat Wall Street estimates by 3 cents. Cost-cutting efforts and better performance in its IT service business offset weakness in hardware and software revenue. IBM also said it was comfortable with fourth-quarter forecasts.

Merrill Lynch upgraded the stock to "buy" from "neutral" but trimmed its 2003 estimate, citing weakness in services booking and light software revenue.

But J.P. Morgan curtailed its enthusiasm over IBM's results, cutting its fourth-quarter earnings estimate and 2003 revenue estimate, saying it believes the demand picture remains unchanged and customers' unwillingness to spend continues.

IBM shares rocketed, erasing all of the previous session's sharp losses, as investors breathed a big sigh of relief -- especially following the ominous third-quarter warning delivered last month from its main rival Electronic Data Systems (EDS: up $0.16 to $13.86, Research, Estimates), which cited flat information technology spending from customers. IBM shares are down 43 percent from a 52-week high of $126.39, hit on Jan. 9.

Tech bellwethers Microsoft (MSFT: up $0.36 to $50.77, Research, Estimates),Intel (INTC: up $0.69 to $14.23, Research, Estimates), Dell Computer (DELL: up $0.72 to $27.74, Research, Estimates), and Cisco Systems (CSCO: up $0.36 to $10.17, Research, Estimates) were buoyed by IBM's news.

Nokia's (NOK: up $1.60 to $16.60, Research, Estimates) positive results gave a lift to a hard-hit telecom sector. The world's largest mobile phone maker Thursday posted a profit at the high end of market expectations as demand for its new phones countered weak markets. Nokia also reaffirmed its fourth-quarter profit forecast.

Intel rival Advanced Micro Devices (AMD: up $0.84 to $4.33, Research, Estimates) Wednesday posted a much wider-than-expected loss for its third quarter, but at the same time forecast "significant" improvement in its fourth-quarter sales.

Among the data storage names, sector leader EMC (EMC: down $0.16 to $4.60, Research, Estimates) reported a third-quarter loss of 2 cents a share, in line with estimates and an improvement over the 12 cents a share it lost one year earlier. But the company forecast revenue to come in flat in its fourth quarter, warning of a continued slump in corporate information technology spending. But shares of QLogic (QLGC: up $5.06 to $28.42, Research, Estimates) shot higher.

A spot of concern did blot the tech landscape. Apple Computer (AAPL: down $0.45 to $14.11, Research, Estimates) Wednesday reported its first net loss in nearly two years but posted an operating profit that met Wall Street estimates. The computer maker also warned that it does not expect strong holiday sales for the PC industry. Merrill Lynch called Apple's results "uninspiring" and cut its December-quarter revenue and earnings estimates.

Cigarette maker Philip Morris (MO: up $1.70 to $40.30, Research, Estimates) injected more cheer for the Dow. The company posted a third-quarter profit in line with estimates but reiterated its lowered guidance for 2002, citing increased competition from discount cigarette brands.

Aerospace and industrial component maker United Technologies (UTX: up $5.37 to $60.00, Research, Estimates) beat Wall Street estimates for its third quarter by 2 cents a share and also reiterated its full-year profit guidance.

Also elevating the blue-chip index was Eastman Kodak (EK: up $2.09 to $32.44, Research, Estimates). The maker of photographic equipment upped its third-quarter guidance, citing improved profit margins in some of its units.

But Coca-Cola (KO: down $1.30 to $45.90, Research, Estimates) dragged on the Dow, and retailer Sears Roebuck (S: down $10.80 to $23.15, Research, Estimates) was also among the day's losing issues. Sears missed its third-quarter forecast and cut its outlook for the rest of the year, putting the blame on bad credit card debt.

Investors largely brushed aside the morning's conflicting economic reports on weekly jobless claims, which came in higher than expected and the latest data on housing starts that showed a sharp surge in September. Industrial output fell in September, underscoring the fragility of the manufacturing sector in the uneven U.S. recovery

Asian-Pacific stocks closed higher Thursday, with Japan's Nikkei index up 0.8 percent. European markets closed higher.

Treasury prices fell, sending the 10-year note yield up to 4.13 percent from 4.02 percent late Wednesday. The dollar gained against the yen and the euro.

Light crude oil futures rose 15 cents to $29.64 a barrel in U.S. trading. Gold prices declined.